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Problem #1 (13 points)_ SHOW AND LABEL ALL CALCULATIONS CLEARLY! Isler and McCarthy (IM) company purchased a new machine on January 1, 2018 for a list price of 430,000. In addition to the list price. IM paid a 6% sales tax on the list price. IM also incurred installation and delivery charges of S3,200 in total. IM also paid $5,000 to have the old machine removed and disposed of. During the installation process Isler tripped over the installer and knocked McCarthy into the machine causing damages to the machine in the amount of $1000. The machine is expected to have a useful life of 10 years or 200,000 units with an estimated salvage value of $20,000. There were 10,000 units produced in 2018 and 15,000 units produced in 2019. If necessary, round your answers to the nearest dollar. REQUIREMENTS: SHOW ALL COMPUTATIONS CLEARLY!! 1. Compute the initial cost of the machine on 1-1-2018. IGNORE YOUR ANSWER TO PART I AND ASSUME THE INITIAL COST IS $460,000 FOR THE REMAINING PARTS OF THIS PROBLEM! THE SALVAGE VALUE IS STILL $20,000 2. Compute the depreciation expense for 2018 and 2019 under each of the methods below. Assume the company has a calendar year-end. a. Straight-line: 2018: 2019: b. Sum-of-the-years-digits method (SYD): 2018: 2019: c. Double-Declining Balance Method (DDB): (AFTER YOU DOUBLE, CARRY THE FINAL DDB 96 TO TWO DECIMAL PLACES) 2018: 2019: d. Units of production method. 2018: 2019: 3. Which methods above are always considered accelerated methods? Why might a company choose an accelerated method for financial reporting purposes (NOT TAX PURPOSES) instead of straight-line? Be clear!! Accelerated methods: Why? 4. Assume IM sells the asset at the end of Year 2020 for $318,000. Record the journal entry for the sale on 12-31-2020 if IM had used the straight-line method. Remember that $460,000 is your initial cost

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